Business sale question.

Forum|Forum|1 year ago
February 7, 2025
1 reply
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Back in 2002, the husband and I bought a mom and pop motel. We lived there 4 yrs in the residence and also managed the motel. We sold it in 2008 contract for deed. We divorced in 2010 and the ex wrote off the interest on his taxes and I used my child credit on agreement.

He passed in 2024. I was on title. I made an agreement for an early buyout with the buyer, and took a 30k loss.

I did make a small profit. I haven't received a 1099s yet.

Do I add this profit on my tax form?

Thank you

AmyC

Employee

Yes. You had a sale of business property that you will report on Sch D, as if you sold a stock. Enter the date of purchase and sale, the basis and sales price. Your basis will be your purchase price minus depreciation plus or minus other things that happened through the years.

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KathytrevinoAuthor

I forgot to mention, I wasn't on the mortgage, just the deed.

We purchased in 2002 and it sold after a 18 yr contract for deed. She still owed 70k on the property, but she took a 30k buyout of which I owed the bank 20k of that.

Where do I put that 10k amount? I lived there for 4yrs previously.

AmyC

Employee

1. The mortgage is irrelevant to the actual sales transaction. You enter the actual sales information with the sales price and the adjusted basis. See About Publication 551, Basis of Assets

2.The time you lived there was so long ago that it has no effect on the sale.

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